QUESTION 1 The historical cost principle states that companies should record assets at their current True False 0.1p QUESTION 2 The expense recognition principle is often referred to as the matching principle because it requires that companies match efforts (expenses) with results (revenues). O True False 0.1 po QUESTION 3 The economic entity assumption states that only items that can be measured in dollars are recorded in the financial statements of the business unit. O True False 0.1 poir QUESTION 4 Reasonable assurance is an example of the application of the cost constraint, which states that the cost should not exceed the benefits received True False 0.1 point QUESTION 5 The primary objective of financial reporting is to provide information to the SEC and FASB. O True False QUESTION 6 Companies must reveal to financial statement users in either the statements or the accompanying notes any and all information have an impact on decision making. O True O False QUESTION 7 The principles of financial reporting provide authoritation guidance on how financial information is reported. True False QUESTIONS Accounting information is considered relevant if nothing important has been omitted and it is not biased toward one position or anothe O True False QUESTION 8 Accounting information is considered relevant if nothing important has been omitted and it is not biased toward one position or a True False QUESTION 9 The accrual basis accounting assumption means that all transactions are recorded in the period when cash is either received or paid. True O False QUESTION 10 Revenues are reported in the accounting period when earned, regardless of when the cash is received. O True O False